...Executive Summary As reported in its Annual Report on Form 10-K for fiscal year ended September, 27, 2015, Whole Foods Markets, Inc. continues to be the leading natural and organic foods supermarket (and the 5th largest public food retailer and 10th largest food retailer based on industry 2014 sales rankings), currently operating 431 stores in 42 U.S. states and the District of Columbia, 10 in Canada and 9 in the United Kingdom. In this case study, “ WFM” or the “Company” will refer to the parent company and the name “Whole Foods” will refer to its stores and grocery business generally. What started as a single small natural foods store called SaferWay in Austin, Texas in 1978 led to the opening of the original Whole Foods Market in 1980, followed by a combination of building new stores and acquiring existing ones. WFM went public in 1992 and not only continued to increase the number and size of Whole Foods stores, but also raised industry standards for the production and distribution of natural foods as well as promoting respectful and sustainable farming and business practices. Additionally, WFM is regularly recognized as one of most desirable employers, with human resources and management practices that allow for more regional discretion and local involvement plus genuine employee input, enhanced employee education and development, and relatively higher compensation within the industry. Founder and CEO John Mackey strives to balance his health- and environment-oriented...
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...2 Written Assignment: Case Study: Whole Foods Monique Marszalik MBA 671- Strategic Management Benedictine University Professor Peter Papantos January 20, 2013 Abstract Organic foods are the new trend and there is one supermarket that is synonymous with organic – Whole Foods. Whole Foods opened in 1980 and has become a leader in natural and organic foods. The company has a very strong mission and vision that they adhere to. This paper will discuss how well the company is doing in regards to their mission statement, core values, and financial statements. It will also show how Whole Foods is doing in regards to its competitors like Trader Joe’s and Wild Oats. Whole Foods is the world’s largest natural and organic supermarket chain. It was founded in 1980 and in these 30 years, has become a leader in the natural and organic food movement. John Mackey, the CEO of Whole Foods, wanted to market natural and organic foods because he felt that if he could provide this high quality food to everyone, he would be helping the world be healthier and more aware of their diets, and live better lives. He planned to do this by having a very mission – driven company. Whole Food’s mission statement is “Whole Foods, Whole People, Whole Planet” The main elements of Whole Foods business strategy are very simple and straightforward. Since going public in 1991, their growth strategy has been to open new stores and purchase existing smaller organic food stores. The locations of...
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...f Unit 5 Whole Foods Case Study Analysis Kaplan University School of Business and Management MT460 Management Policy and Strategy Author: Devin Thomas Professor: Dr. Thigpen Date: January 17, 2012 Introduction Whole Foods Markets is a food market that prides itself on providing its customers with the highest quality of natural and organic foods. Through the acquisition of a number of other companies, whole Foods have grown to become the largest natural food supermarket in the United States. Staying true to their mission statement and original ideals is the formula the company credits their success to. Synopsis of the Situation Founder John Mackey may not have dreamed that the one Whole Foods market store he helped to create back in 1980 would grow to become the leading supermarket in the natural foods industry. Whole Foods has come a long way since the first store opened in Austin, Texas over 30 years ago: subsequently, so has the organic food industry in its entirety. Expansion of the natural foods industry has brought with it increased demand for organic food and new competition. With such demand on the rise, supply has now become a concern for Whole Foods. Key Issues Only 3 percent of US farmers grow organic products. US shoppers spent 45 billion dollars on natural and organic products in 2004. (Harasta, Hoffman, 2007). The growing organic foods industry has created major competitors like Trader Joes that offers high quality products at low...
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...Case Study: Whole Foods Market in 2010: Vision, Core Values and Strategy Jessica Shramek Hawaii Pacific Whole Foods began with one small store in Austin, Texas in 1980. “In 1978, twenty-five year old college dropout John Mackey and twenty-one year old Rene Lawson Hardy, borrowed $45,000 from family and friends to open the doors of a small natural foods store called SaferWay in Austin, Texas (the name being a spoof of Safeway, which operated stores under their own name in Austin at that time)” (Wholefoodsmarket.com). A few years later, Mackey and Lawson Hardy partnered with Craig Weller and Mark Skiles to merge SaferWay with Clarksville Natural Grocery, which resulted in the opening of the original Whole Foods Market on September 20, 1980. Beginning in 1984, Whole Foods Market began its expansion out of Austin, by continuing to open new stores from the ground up, and by acquiring other natural foods chains. The chief elements of the strategy that Whole Foods Market is pursuing are providing the best natural and organic foods to customers through retail grocery stores. “Whole Foods, Whole People, Whole Planet” is the slogan and visionary statement John Mackey uses to describe his company and mission. Whole Foods sells products of the highest quality, least processed, most flavorful, naturally preserved, and the freshest foods available. When a product is labeled organic it has “to be grown and processed without the use of pesticides, antibiotics, hormones, synthetic chemicals...
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...Jeanne Eng 2012-04-BUS-421-GS001 Case Study Assignment 1 – Whole Foods Market 1. Does the company’s strategy reflect the company’s mission? Explain. Whole Food’s mission is based on three categories, the food, the people and the planet. They believe in providing natural whole foods through highly trained and passionate employees with the company taking active responsibility for the planet. It is apparent, when examining the company, that their business practices reflect their mission. Using their Product Quality Standards documents as a guideline, it is clear Whole Foods carefully considers which products they do or do not sell. Their buyers often visit the manufacturing plants of suppliers to ensure high standards. In addition to their commitment of only carrying foods that are “free of artificial preservatives, colors, flavors, sweeteners and hydrogenated fats” (Whole Foods Market, 2012), they also maintain a list of unacceptable ingredients which include standards like “artificial colors, artificial flavors, hydrogenated fats and high fructose corn syrup” (Whole Foods Market, 2012) and they do not carry products that contain those ingredients. Within the store, Whole Foods takes a team based approached to individual store management and success. Team members are organized around team leaders, which are responsible and empowered to make decisions such as merchandising and operations. Team members are also provided with other avenues for feedback such as an...
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...Whole Foods has been able to utilize the positive assumptions about a person’s work ethic to their advantage. McGregor’s Theory Y tells us that "Managers could accomplish more through others by viewing them as self-energized, committed, responsible, and creative beings.” (Kreitner and Kinicki, 9) By implementing a workplace that is built within the values of Theory Y Whole Foods motivates, engages and empowers their employees, creating a more positive workplace, and happier employees. Whole Foods builds its human capital by taking the time to select people who they feel will be a "good fit" for the company as a whole, and looks beyond ability and skill to do so. Social Capital is developed by creating a workplace that encourages happy employees. John Mackey has been quoted as saying “when people are really happy with their jobs, they provide much higher degrees of service to the customers. Happy team members result in happy customers”. This results in a positive chain reaction that leads to more business, more money. (Kreitner & Kinicki, 2013, p. 30) The profile of a 21st century manager can be seen throughout the Whole Foods organization. Managers are seen less as people who give orders and more of team members, coaches and advocates. They understand that in their industry their primary resource is their human capital, and work to keep this resources preforming at its best by investing in quality training and going to great lengths to make sure that their employees are happy...
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...Whole Foods memorandum to: business Policy subject: Whole Foods Case Analysis ------------------------------------------------- date: [ 9/2/2012 ] INTRODUCTION The following is a situational analysis of Whole Foods. I will be explaining the company’s background, current situation, SWOT analysis, key issues and alternatives and my recommendations for the company. CURRENT SITUATION In 1980, Whole Foods Market evolved from a local supermarket that sold natural and health foods in Austin, Texas, into the world’s largest chain of natural and organic foods supermarket. In 2009, the company has sales revenue of $8 billion and in 2010, had 289 stores in the United States, Canada and Great Britain. Over the past 32 years, Whole Foods has become the leader in organic and natural foods throughout the United States, helping the people of the United States become more aware of their food habits.. John Mackey, co-founder and CEO, believed that marketing high quality natural and organic foods to more and more customers in more and more communities would help spread the word that our diets are very important to way we live, allowing people to see how they can enjoy a long, healthy and pleasurable life. Mackey states that he wants Whole Foods to become an international brand synonymous with carrying the highest quality natural and organic foods available and being the best food retailer in every community in which Whole Foods stores were located. He wants Whole Foods to set...
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...interpersonal communication and communication on an online forum remains the same. The only difference lies in the skills possessed by the sender. The sender doesn’t need only good linguistic skills as a direct sender would but he also should know how to write. His spellings, grammar and punctuation should be correct so as to not deter his readers. There should be a flow in his writing so the readers are not distracted by errors of writing, otherwise his own errors will increase the strength of the perceptual screen of the receivers. The perceptual screen of the receiver is also present in the online forums but in this case it very narrowly filters the message. This happens because the receivers do not directly know the senders and the credibility of online forums is lower than that of direct communication. 2. How does defensive communication enter into this case? Defensive communication is basically communication which a person employs when...
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...Unit 5-Whole Food Market Case Study Analysis Kaplan University School of Business MT460 Management Policy and Strategy Author: Andrea Reed Professor: Dr. Marian Leerburger Date: November 21, 2012 Whole Food Market Case Analysis Introduction In 1978, John Mackey opened a natural foods grocery called Safer Way that focused mainly on vegetables. The store was not very successful and in 1979 Mackey joined with Craig Weller and Mark Skiles and they started Whole Foods Market. What Craig, Weller and Skiles wanted to do was change the world’s diet to a healthy one. Whole Foods not only has markets they have several other business; Allegro Coffee company, Pigeon cove seafood processing and Produce Field Inspection Office and Select Fish (Harasta and Hoffman, 2007). Whole Food Markets looks forward to one day providing the highest quality good tasting foods available. Synopsis of the Situation Whole Foods Market is a leading seller of natural and organic food. With over 100 stores their goal is to become one large store instead of a number of small ones. Whole Foods Market would like to make shopping for food into a pleasant, fun experience. It is the desire of Whole Foods to make the customer think of home when they enter one of their markets. The vision of Whole Foods is to have a brand known worldwide, and to introduce the future generation to a healthy diet and be the best in food retail( Key Issues With the growing demand will World Food Market be able to...
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...Unit 5 Whole Foods Case Study Analysis Kaplan University School of Business MT460 Management Policy and Strategy Author: Jonelle Newman Professor: Dr. Norris Date: March 29, 2014 Whole Foods Market Case Study Analysis Introduction Whole Foods Market began with a vision from entrepreneur John Mackey and his chain of stores has been successful for 30 years. Whole Foods Market focuses on natural and organic food items. One of the reasons why Whole Foods has been so successful is because their stores are different than its competition and the differentiation “allows them to charge a premium price for premium products.” (Pearce & Robinson, 2013, p. 29-1). Whole Foods focuses on natural and organic foods which is a definite plus as more people become focused on wellness and eating healthier. This leading supermarket chain does not waiver on its core values and mission and their mission statement which has also become their motto is simple: “Whole Foods, Whole People, Whole Planet.” (Farfan, 2014). Synopsis of the Situation Whole Foods has grown drastically over the years. The growth of the supermarket chain has been credited to store openings, acquisitions, and mergers. It is necessary to note that although the company’s total sales continue to increase; the operating margin and stocks have declined. (Pearce & Robinson, 2013). Key Issues There are key issues that have been attributed to the decline of the company. The recession caused...
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...Ronald White: BA 427, Winter 2013: Whole Foods Market case study: As stated in the case study, the Whole Food Market Company’s vision and strategy is to offer "the most flavorful naturally preserved and fresh foods available.” The company intends to market their products in "appealing store environments that make shopping at whole foods interesting and enjoyable." The company's cofounder and CEO, John McKay, believes that the availability of high quality natural and organic foods, supported by education and socially conscious activities will "gradually transform the diet of individuals in a manner that would help them live longer, healthier, more pleasurable lives." (Case study, p.1) The company believes that its dedication to supporting organic farming, with programs such as the Whole Planet Foundation micro-loan program, supporting food banks, sponsoring neighborhood events, and donations to local nonprofit groups will generate the reputation and word of mouth needed to support the further success from a marketing standpoint. The company's image is further supported by its continued listing in the Forbes Best Places to Work list and recognition in health magazines. The vision is encompassed by the company motto “Whole Foods, Whole People, Whole Planet.” These principles are of the utmost importance to the company. By supporting the whole foods industry, healthier people from healthy food, and a healthier planet through green movement in agriculture and operations, this...
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...Working at Whole Foods appears to have many appealing factors. The company concentrates on providing exceptional quality food for customers to purchase for their families. This same great quality is manufactured within the company employees contributing to superlative customer service. At many grocery stores stocking the shelves happens at night when not many customers are around. At Whole Foods, they continue to stock shelves throughout the day by product knowledgeable employees. At many grocery stores, when they are stocking the shelves, they do not want to be bothered as they need to be productive to get all the product put out by the end of their shift. At Whole Foods, the associates do not mind helping customers and initiate conversation...
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...Summary of the Facts: i) Whole Foods was founded in Austin and it owns and operates a chain of natural and organic foods supermarkets through several wholly owned subsidiaries. The company’s supermarkets are located in the US, Canada and the UK. ii) While the product and brand selections varied from store to store, Whole Foods’ product line included some 30,000 natural, organic, and gourmet food products and non food items. (page 10 of 31; Whole Foods Market in 2008) iii) Number of stores increased considerably from 10 in 1991 to 276 in 2007. iv) They are the undisputed $ 4.7 b organic supermarket industry leader. Statement of the Problem: Whole Foods is facing the problem of higher prices of its organic foods resulting in to decline of sales, customers being attracted to other local retailers for the organic food and this is also resulting into the hindering of the brand loyalty of Whole Foods. Causes of the problem: 1) Whole Foods strategy is to give the best product to the customer and maintaining the quality of the organic foods resulting in the higher prices than conventional grocers. 2) Prices of organic foods are 25 – 75 % more costly to grow and market (page 12 of 31; Whole Foods Market in 2008). 3) Exotic offerings and product variety and assortments leading to higher prices. Example would be of Japanese egg plant, 40 different cheeses, and 20 different coffees. Possible Solutions: 1) Lower prices to compete with grocery stores...
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...COMPANY BACKGROUND Whole Foods Market was founded in Austin, Texas, when four local businesspeople decided the natural foods industry was ready for a supermarket format. Their founders were John Mackey and Renee Lawson Hardy, owners of Safer Way Natural Foods, and Craig Weller and Mark Skiles, owners of Clarksville Natural Grocery. The original Whole Foods Market opened in 1980 with a staff of only 19 people. It was an immediate success. At the time, there were less than half a dozen natural food supermarkets in the United States. It has grown in leaps and bounds since then. Today, they are the world’s leader in natural and organic foods, with more than 310 stores in the North America and the United Kingdom (About Whole Foods Market). During its 31-year history, Whole Foods Market has been a leader in the natural and organic food movement across the United States, helping the industry gain acceptance among growing numbers of consumer concerned about the food they eat (Thompson, Strickland, & Gamble, 2010, p.C-2). The company seeks out the finest natural and organic foods available, maintains the strictest quality standards in the industry, and has an unshakeable commitment to sustainable agriculture. Add that to the excitement and fun they bring to shopping for groceries, and you start to get a sense of what they are all about. John Mackey, the company’s cofounder and CEO, believes that Whole Foods’ rapid growth and market success has much to do with its having “remained...
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...BME-214614-04 Organizational Behavior 18 February 2013 Belief and Support of Human Capital: Case Study Analysis of Whole Foods What role, if any, does McGregor’s Theory Y play at Whole Foods? Explain? The primary focus of this case study analysis shall be to examine the methods of Whole Food’s distinctive approach and development to the implementation of creative management strategies and how they can continue to successfully help them to maintain growth in their company. The underscoring premise of McGregor’s Theory Y primarily rest on the assumption that that the role of management is develop the potential of their employees and help them to realize their potential to meet the common goals of their organization (Steward, 2010). With this underlining thought in mind McGregor’s Y Theory plays an intricate and crucial role at Whole Foods. According to our textbook, Organizational Behavior, by Robert Kreitner and Angelo Kinicki, and the company’s primary mission directives, Whole Foods goal is for upper management to share the responsibility with their frontline managers in the development of a successful work environment (Kreitner & Kinicki, 2013, p. 30). Whole foods promotes their employee teams to be self-directed and take initiative and responsibility for operating together for the benefit of their entire business organization. To this end John Mackey, Cofounder and Co-CEO of Whole Foods Market promotes through the application of McGregor’s Theory Y the happiness and growth...
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